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California Gov. Gavin Newsom’s office told drivers to avoid Chevron stations over Memorial Day weekend, framing the move around what it said are higher prices charged by the company compared with unbranded fuel.
In a post Thursday on X, Newsom’s office said consumers could buy “unbranded gas” that “comes from the same refineries, storage tanks, and pipelines” and “meets the same state standards,” arguing that paying for the Chevron brand can be a “rip you off” overpay. The office said the posting was tied to an analysis by a group within the state’s energy commission that oversees the oil and gas industry.
The office said that analysis found Chevron averaged more than 60 to 80 cents per gallon above unbranded alternatives. Newsom’s office made the call as Memorial Day weekend—one of the busiest travel times of the year—approaches.
The dispute also tracks with Chevron’s own messaging at the pump in California, where signs have directed customers to a company webpage and linked the high cost of gasoline to the state’s climate policies. It was not clear when Chevron put up the signs, but Chevron spokesman Ross Allen said they are part of a campaign the company launched three years ago focused on customer education about how California policies affect prices.
Allen said Chevron “has been very vocal about the importance of customer education” and added that most of the hundreds of Chevron stations in California are operated by independent owners who set their own prices.
The conflict over pricing arrives as California’s statewide average gas price remains well above the U.S. average. The American Automobile Association reported that gas in California averaged $6.14 per gallon on Thursday, about $1.58 higher than the national average. The state’s energy commission estimates that California taxes consumers about 70 cents per gallon of gas, which the AP story described as the highest gas tax in the country.
Newsom’s office also pointed to what it characterized as political stakes around oil costs, saying Chevron has become a target in the governor’s race. The office’s broader context included a criticism by billionaire climate activist Tom Steyer of former federal health secretary Xavier Becerra over campaign contributions from Chevron. Steyer and Becerra are both Democrats, according to the AP report.
Beyond the state-level back-and-forth, the AP article tied gas prices to wider pressures on energy markets since the Iran war began. It described crude oil prices rising as the Strait of Hormuz—through which a fifth of the world’s crude oil normally passes—has been effectively shut, leaving tankers unable to deliver crude.
Newsom, who has frequently promoted California’s stance as a global climate leader, has pursued policies aimed at curbing oil company profit and reducing gas prices in recent years. The AP report said he signed a 2023 law that allows the state energy commission to penalize oil companies for excess profits, including a declaration that the state had “finally beat big oil.”
The article also said regulators voted last year to hold off on plans to penalize companies until 2030, prioritizing other efforts to protect consumers at the pump. It attributed that postponement to the decision by two refineries—accounting for about 18% of California’s refining capacity—to announce plans to close, which the AP report said reignited debate over how California’s climate policies affect prices.
Newsom also signed another law in 2024 giving the commission authority to require refineries to keep a certain amount of fuel on hand, aiming to prevent sudden price increases when refineries go offline for maintenance, though the AP report said the regulation has stalled.